The United States and Iran have reached a peace agreement to end their war and reopen the Strait of Hormuz for oil traffic.
The deal aims to relieve global oil market pressures and resolve a significant political liability for the U.S. administration. By reopening the critical waterway, the agreement addresses the economic instability caused by the recent conflict.
The agreement institutes a 60-day cease-fire [1] to conclude a war that lasted three and a half months [1]. A U.S. State Department spokesperson said the two nations have agreed to the cease-fire and the reopening of the Strait of Hormuz [2]. President Donald Trump said the United States will remove the Navy blockade of the Strait of Hormuz [3].
Prime Minister Shehbaz Sharif of Pakistan, who was involved in the process, said a document signing will take place Friday, with "pre‑implementation discussions" expected in the interim [4]. The signing ceremony is scheduled for Friday, June 19, 2026 [2], and will be held in Switzerland [2].
While some reports suggested the deal was already complete, other sources indicate the parties have reached a preliminary agreement pending the official signing. The transition from the current blockade to open traffic is expected to follow the interim discussions mentioned by Sharif [4].
“"The United States will remove the Navy blockade of the Strait of Hormuz,"”
The reopening of the Strait of Hormuz is a critical move for global energy security, as the waterway is a primary chokepoint for the world's oil supply. The 60-day cease-fire serves as a cooling-off period to test the stability of the peace agreement before a permanent resolution is established. The involvement of Pakistan and the choice of Switzerland as a neutral venue underscore the diplomatic effort to stabilize the Middle East through international mediation.
